What is happening in Washington, DC?
Now some in Congress are meeting behind closed doors on a tax plan they say would lower overall rates, which sounds good at first. However, in order to do so they are considering wiping out important deductions, things like the home-mortgage deduction, charitable deductions, and oil and gas tax provisions that have proved their merit for more than 80 years
While it’s impossible to know exactly what they’re cooking up, multiple reports have surfaced that your provisions are at-risk. They say tax deductions for percentage depletion, which is 15 percent of your royalty check, is on the chopping block along with the ability of independent producers to deduct their ordinary and necessary business expenses in the year they occur.
These moves hurt you and would cut the value of your minerals by curtailing homegrown energy production and reducing the number of leases and new wells drilled.
America is shaking off its dependence on foreign oil for the first time in a generation thanks to you and U.S. drillers. We now import only 40 percent of our daily petroleum needs. That’s down from more than 60 percent just a few short years ago. This homegrown energy boom is helping bring manufacturing jobs back to the United States and is lowering the cost of things that require a lot of energy to make. It’s making a positive difference in factories and farms from coast-to-coast.
Fortunately, we know some key lawmakers in these meetings see things like you do and are speaking up on your behalf. They need all the encouragement we can give them. If you don’t want Congress taking 15 percent or more of your royalty check, take a few minutes to call these friends and urge them to keep fighting for you.